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Working Group on drafting a law on regulation of anthropogenic emissions and removals of greenhouse gases began its work
Saturday, 04 August 2012 16:05

neia

The first meeting of working the group on drafting a law on regulation of anthropogenic emissions and removals of greenhouse gases (working group) took place on August, 2, 2012.

The meeting was attended by Chairman of the State Environmental Investment Agency (SEIA), first deputy chairman of the SEIA and other group members, including representatives of the SEIA, the European Bank for Reconstruction and Development (EBRD), public and businesses.

International experience on the regulation of anthropogenic emissions and removals of greenhouse gases and emissions trading of greenhouse gases (GHG) was presented during the meeting by the SEIA. Presented material was discussed and the members of the working group were given an opportunity to express their proposals to the future draft law on regulation of anthropogenic emissions and absorption of greenhouse gases (the draft law) to develop postulates to be put in the basis of national legislation on emissions trading.

During the meeting representatives of the SEIA reported that:

- Ukraine has no legal acts that regulate the establishment and operation of emissions trading scheme (ETS); the weak institutional capacity and the low level of understanding of the importance of establishing of ETS are the obstacles on the way of ETS development in Ukraine.

- Draft Law "On the regulation of energy saving» № 7231 from 07.10.2010, which aimed at regulating the issue of GHG emissions in Ukraine and could be the basis for the functioning of ETS in Ukraine was removed from consideration by the Parliament in 2012 as one that has lost its relevance[1].

- Ukraine's accession to the EU ETS is not a simple matter, since such a system is already operating in the EU and tested in practice, but Ukraine has still go through such stages in the future by implementing a pilot GHG emissions trading.

- The issue of accounting of GHG emissions in Ukraine remains as problematic one.

- Limitation of GHG emissions in Ukraine for their real reduction relatively to the present level would harm the economic interests of Ukraine, since the initial introduction of ETS in Ukraine should not be exacting for business.

- To apply a pilot approach to implementation of ETS in Ukraine and test it, a limited number of sectors and enterprises will be included into a pilot ETS.

- The issue of difference in cost of GHG reduction in different sectors of economy is also a problematic one, because it can lead to a situations when some sector of economy becomes a buyer of the GHG emissions permits and the other one is only a seller of emission allowances, thus such issues should be considered to avoid some speculation in the future.

- The original text of the draft law will be prepared and provided to members of the working group within one month after a meeting for commenting and submission of proposals.

Among the important aspects expressed by members of public - director of the Expert Advisory Center “Legal Analytics” (EACLA) Mariana Bulgakova, which must be taken into account when drafting the law, the following is worth noting:

- Limits of the amount of GHG emissions in Ukraine should be set at a level that predetermines a need for real reductions of GHG emissions.

- There should be a shortage of permits for GHG emissions, as this will encourage businesses to take measures to reduce GHG emissions because of their inability to exercise without special GHG permits.

- Adapting of ETS in Ukraine to EU ETS is an important issue.

- Developing of the mechanism of gradual reduction of the limits of GHG emissions (and consequently the amounts GHG emission permits) as a prerequisite for the reduction of GHG emissions in Ukraine.

- A clear legal procedures for functioning of ETS and allocation of permits for GHG emissions should be envisaged by law.

- The principle of openness of ETS functioning and providing access to relevant information is important for its transparency of.

- Monitoring, reporting and verification rules on GHG emissions should introduced.

- Proper control over the operation of ETS and responsibility for the violation of laws should be foreseen.

- Enhancing the institutional capacity of ETS functioning in Ukraine through the implementation of normative powers, executive functions and control levers in this area by various agencies and branches of power.

Representative of the EBRD's draw the attention on the following aspects:

- Ukraine has a positive experience in implementing of joint implementation (JI) projects, and this should help in implementing the ETS in Ukraine, as during implementation of JI projects, many enterprises have been monitored by international methods, so are more prepared to ETS.

- Industry should be aware that the terms of GHG emissions will become more stringent and limits on GHG emissions over time will decrease and therefore the number of permits for emissions will also decrease.

- The first phase of emissions trading should be more privileged to support market participants.

Other aspects attention to which was paid during the meeting:

- While allocation of permits for GHG emissions it should be taken into account that not only a certain emissions level by enterprises is considered, but energy-efficiency of the businesses and the number of emissions per unit of product too.

Members of the working group were proposed to express in writing all proposals the draft law.



[1] It should be noted that public expressed concerns on this bill. Suggestions and propositions of the EACLA to the bill can be found on the link: http://legalanalytics.com.ua/images/stories/energy.saving.en.pdf.